Markets · Futures
Futures, the basics.
A futures contract is an agreement to buy or sell a set amount of something at a set price on a future date. They trade on regulated exchanges with central clearing.
How they differ from CFDs
- Exchange-traded. Prices come from a central order book, not your broker.
- Fixed sizes. Each contract has a set size and tick value. Micro contracts are a tenth of the E-mini.
- Expiry. Contracts expire. Traders who want to stay in “roll” to the next month.
- Margin. Set by the exchange as a minimum; brokers can ask for more. Losses are settled daily.
- No overnight financing. The cost of carry is built into the futures price.
Popular contracts
| Contract | Symbol | Size | Exchange |
|---|---|---|---|
| E-mini S&P 500 | ES | $50 × index | CME |
| Micro E-mini S&P 500 | MES | $5 × index | CME |
| E-mini Nasdaq-100 | NQ | $20 × index | CME |
| Micro E-mini Nasdaq-100 | MNQ | $2 × index | CME |
| Crude Oil (WTI) | CL | 1,000 barrels | NYMEX |
| Micro WTI Crude Oil | MCL | 100 barrels | NYMEX |
| Gold | GC | 100 troy ounces | COMEX |
| Micro Gold | MGC | 10 troy ounces | COMEX |
| Euro FX | 6E | €125,000 | CME |
Margin and tick values change; check the contract specs on cmegroup.com. Prop firms that fund futures traders are in the prop firm directory.
Futures are leveraged and losses can exceed your deposit. Not advice.